Morning Gold & Silver Market Report – 9/24/2012

GOLD & SILVER PRICES FALL IN EARLY MORNING TRADING

Increased fears about the slowing U.S. and European economies have driven up the U.S. dollar while driving down Gold and other commodities across the globe. Gold and Silver prices are currently up over their morning lows. Most likely, this downward movement is a correction in the value of the euro versus the U.S. dollar.

Spain was once a strong advocate that Ireland and Portugal be required to accept a bailout. Now the tables have turned, and it is the Spanish government who is feeling that pressure. Spain’s recent support from the European Central Bank, which lowered their borrowing costs, has bought them time. However, in order to cut contagion, Spanish leaders are being pressured to move to the next step, which would be a bailout.

U.S. investors are buying U.S. Treasuries at a quicker pace than international investors for the first time since 2010. This has certainly contributed to the U.S. debt climbing above $16 trillion USD for the first time. U.S. Treasuries have become popular despite their record-low yields because many investors do not believe that QE3 will succeed in stimulating the economy and creating more jobs. International investors still own 50.4 percent of the U.S. Treasuries, but this is down from the 55.7 percent share owned in 2008.

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,762.50, Down $14.50
• Silver, $33.91, Down $0.74
• Platinum, $1,610.20, Down $28.40
• Palladium, $636.40, Down$35.20

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